Plains All American Pipeline, L.P. and Plains GP Holdings, L.P. announced that the sale of Plains’ Canadian natural gas liquids (NGL) business to Keyera Corp. will now close in May 2026. The transaction, originally slated to close in the first quarter of 2026, is valued at C$5.15 billion (approximately US$3.75 billion) and represents about 13× expected 2025 distributable cash flow and 8.5× 2025 EBITDA.
The divestiture is a cornerstone of Plains GP Holdings’ strategy to become a pure‑play crude oil midstream operator. By shedding the NGL assets, Plains removes commodity‑price volatility from its frac‑spread exposure and frees capital for bolt‑on acquisitions and shareholder returns. Chairman and CEO Willie Chiang said the deal “advances our efficient growth strategy and establishes Plains as the premier pure‑play crude oil midstream entity with highly strategic assets linking North American supply to key demand centers.”
Regulatory review by the Competition Bureau is ongoing, and the delay from the first quarter to May 2026 reflects the time required to complete that assessment. Plains and Keyera have continued to work constructively through the process and remain confident that the transaction will close on the new date.
The sale is expected to generate roughly US$3 billion in net proceeds after taxes and expenses. Plains plans to deploy the proceeds to fund disciplined bolt‑on acquisitions, repurchase preferred units, and make opportunistic common unit repurchases, thereby strengthening its balance sheet and enhancing shareholder value.
Analysts have responded positively to the transaction. In March 2026, Morgan Stanley raised its price target for Plains All American Pipeline to $23 from $21, citing the strategic shift and improved cash‑flow quality. In February 2026, Scotiabank set a target of $23, reflecting confidence in Plains’ new focus on crude‑oil midstream operations.
Plains will retain most of its U.S. NGL assets and may shop them in the coming years. Integration planning for the Canadian assets is underway, and the company is also integrating the EPIC Crude pipeline, now operating as Cactus III. In addition, Plains is pursuing a self‑help initiative targeting $100 million in cost savings through 2027, with half expected in 2026, to offset a flat Permian production profile.
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